Paying back Medicine Uni Fees

JuliaMary_2

Appreciate some advice please:

2 sons in Uni both studying medicine; oldest just ending second year and youngest just finishing first year - both likely to be 6 year courses) with added year for intercalation). 

Currently tuition fees are £9250 per year; although NHS covers year 5&6 so looking at £37000 each overall.
 
Both are studying away from home; one in London, so yearly living costs (room; food etc) circa £10,000 per annum - bit more for London but I’m averaging it all - so likely to be £60000 on living costs for the 6 years.

Adding on tuition fees that’s basically £100,000 each (London one will probably be bit more).

Husband and I didn’t go to Uni and although not rich have always paid down debt as quickly as possible. So we’ve been trying to help them pay off as much as possible. We had a little in savings and so far we’ve paid off first and second year (tuition and living costs) for oldest and also first year costs for youngest but basically we’re now really struggling. (I can’t find any money for basic summer holiday - caravan /small cottage in uk).  We’re able to put aside £2k a month (£1k for each of them) from salaries to help with uni costs but the uni savings are now exhausted so we’re down to the £2k per month.

I never wanted them to be in debt for working hard academically and getting an education. Hence trying to throw so much money at paying down the uni debts as possible. The interest rate worries me; the fact it is cumulative and that Govt/student finance can change the terms retrospectively. As they will end up on relatively decent salaries they could end up paying back thousands in interest and I just didn’t want them burdened with that; especially compared to previous generations. As Doctors their debts will be above salary payback threshold so although remainder will be written off after 30/40 years they’ll be paying a lot in interest before then. 

I’m just wondering if we can’t pay back £40k per year (£20k each) in total is it still worth throwing as much as possible so the debt is as minimal as possible? And splitting what we can pay evenly between the two etc. I think the obvious answer is ‘yes’ but am doubting myself - hence posting on here. I’m thinking keeping a small pot for a summer hol etc will then allow some debt payback whilst also allowing some shared family times (whilst the still want/have time) to come with us :-)

It’s likely we’ll be retiring as they’re finishing Uni (5-7 years) so really the only chance we have to make big inroads into the debt is whilst we’re working etc over the years whilst they’re in uni studying.

Thanks for all advice 

elsien

I suppose the first question is do they want you to be throwing so much money at it that you can’t afford a basic holiday for yourselves, when in the future they will be on quite a reasonable salary and in a better position to pay? 

Would some of that money not benefit you in your own retirement? I understand what you’re saying about the increasing interest but you do have to look after your future selves as well.

BikingBud

You have my full sympathies @JuliaMary_2 thank you for supporting your children through this.

We complain that we do not have enough staff in the NHS yet consider that it is acceptable to request (demand) individuals to amass large personal debt to study and become doctors, nurses, physios etc.

Key roles that are critical to effective public services should be paid for out of the public purse. Why should they carry that burden personally? They will also pay significant tax during their lifetime.

At the same time people that study "mickey mousery" and never get a job get worth anything more than the median wage never pay back fees!

The UK has a barmy perspective of values!

silvercar

Your key sentence, "As Doctors their debts will be above salary payback threshold so although remainder will be written off after 30/40 years they’ll be paying a lot in interest before then. "

The remainder of their loan will be written off, so their repayments will be the 9% above the threshold for the whole of their working life. By you repaying some of the loan now, it won't make a penny difference to their repayments, unless you pay off so much that their loan is repaid in full before write off. 

So effectively all you are doing is gifting money to the government.

The only time that your hard earned cash contributing to their student loans will make a difference is if they become very high earners. Arguably if this is the case, they can well afford the 9% repayments at that time.

You could actually end up with a situation where your affluent children are paying for things for you eg a nice holiday out of their income, precisely because you have been making these payments. Worst case is that you struggle in future years and need help from your children, which could amount to more than the 9% they would be paying and worse could be in addition to their loan repayments (if you haven't fully cleared their loans).

Please don't do this.

Have a family discussion if need be. But frame these student loans as a graduate tax that has enabled them to pursue such worthwhile careers.